Twofold multiprior preferences and failures of contingent reasoning

A-Tier
Journal: Journal of Economic Theory
Year: 2022
Volume: 202
Issue: C

Authors (5)

Echenique, Federico (University of California-Berke...) Miyashita, Masaki (not in RePEc) Nakamura, Yuta (not in RePEc) Pomatto, Luciano (not in RePEc) Vinson, Jamie (not in RePEc)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a model of incomplete twofold multiprior preferences, in which an act f is ranked above an act g only when f provides higher utility in a worst-case scenario than what g provides in a best-case scenario. The model explains failures of contingent reasoning, captured through a weakening of the state-by-state monotonicity (or dominance) axiom. Our model gives rise to rich comparative statics results, as well as extension exercises, and connections to choice theory. We present an application to second-price auctions.

Technical Details

RePEc Handle
repec:eee:jetheo:v:202:y:2022:i:c:s0022053122000382
Journal Field
Theory
Author Count
5
Added to Database
2026-01-25